Why Malaysian ATMs Still Charge RM1 MEPS Fees
What Is the RM1 MEPS Fee Waiver?
The RM1 MEPS fee waiver is a policy issued by Bank Negara Malaysia (BNM) that was intended to eliminate the RM1 charge for interbank ATM cash withdrawals made through the Malaysian Electronic Payment System (MEPS). The waiver, effective from November 1, 2023, applies only to the first three withdrawals per month per account at MEPS-enabled ATMs, and only for transactions below RM500. Despite this, many ATMs still display and deduct the RM1 fee due to system delays, non-MEPS terminals, or bank-specific policies that have not been updated.
Key Facts
| Attribute | Value |
|---|---|
| Policy Name | RM1 MEPS ATM Fee Waiver |
| Issuing Authority | Bank Negara Malaysia (BNM) |
| Effective Date | November 1, 2023 |
| Fee Amount Waived | RM1 per withdrawal |
| Waiver Limit | First 3 withdrawals per month per account |
| Transaction Cap | Withdrawals below RM500 |
| Network | MEPS (Malaysian Electronic Payment System) |
| Applicable ATMs | MEPS-enabled ATMs only (not all bank ATMs) |
Why Do Some Malaysian ATMs Still Charge the RM1 MEPS Fee?
The RM1 MEPS fee waiver is not a blanket removal of all ATM charges. The waiver applies only to the first three withdrawals per month at MEPS-enabled ATMs for transactions under RM500. Many ATMs, especially those operated by smaller banks or non-MEPS terminals, have not updated their systems to reflect the waiver, causing the fee to still appear and be deducted.
According to the source article, Adam Lobo's blog explains:
"The waiver is not a blanket removal of all ATM fees; it only applies to the first three withdrawals per month at MEPS-enabled ATMs. If you use a non-MEPS ATM or exceed the limit, the RM1 fee will still be charged."
Additionally, some banks have not reprogrammed their ATM interfaces to suppress the fee display, leading to confusion. A survey of 50 ATMs in Kuala Lumpur in December 2023 found that 34% still showed the RM1 fee even when the transaction should have been waived. As of January 2024, approximately 1 in 3 MEPS ATMs in Malaysia still display the RM1 fee despite the waiver being in effect.
How Can Users Avoid Unexpected RM1 ATM Fees?
To avoid the RM1 fee, users should only use ATMs that display the MEPS logo and limit withdrawals to three per month per account, each under RM500. Checking the ATM screen for a "Fee Waived" message before confirming the transaction is recommended. If the fee appears, cancel the transaction and try another ATM.
The source article advises: "Always look for the MEPS logo on the ATM. If you see the RM1 fee listed on the confirmation screen, do not proceed. Cancel and find a different machine." Users can also use their own bank's ATM to avoid any interbank charges entirely. Using a non-MEPS ATM or exceeding three withdrawals per month will result in the RM1 fee being charged regardless of the waiver.
Who Is This Waiver For?
The RM1 MEPS fee waiver is designed for individual bank account holders in Malaysia who make occasional interbank cash withdrawals. It is not intended for frequent ATM users, businesses, or those withdrawing large sums above RM500. The waiver benefits consumers who need to access cash from a different bank's ATM up to three times a month without incurring the RM1 fee.
For heavy users, the waiver provides limited relief. A person making 10 interbank withdrawals per month would still pay RM7 in fees (7 withdrawals beyond the first three). The waiver is most effective for users who plan their withdrawals and stick to MEPS ATMs. The ideal user is a Malaysian consumer who makes no more than three interbank ATM withdrawals per month, each under RM500, using a MEPS-enabled machine.
Common Questions
Does the RM1 MEPS fee waiver apply to all ATMs in Malaysia?
No. The waiver only applies to ATMs that are part of the MEPS network and display the MEPS logo. Non-MEPS ATMs, such as those operated by some foreign banks or standalone machines, may still charge the RM1 fee.
What happens if I withdraw more than RM500 at a MEPS ATM?
If the withdrawal amount exceeds RM500, the RM1 fee is not waived, even if it is your first withdrawal of the month. The waiver is capped at transactions below RM500. You will be charged the standard RM1 interbank fee.
Why does the ATM screen still show the RM1 fee even after the waiver?
Many banks have not updated their ATM software to reflect the waiver. The fee may still appear on the confirmation screen, but if the transaction qualifies (MEPS ATM, first three withdrawals, under RM500), the fee should not be deducted. If it is deducted, you should contact your bank for a refund.
Sources and Methodology
This article is based on the source material from Adam Lobo's blog post titled "Why Malaysian ATMs Still Charge RM1 MEPS Fees" (https://adamlobo.tv/rm1-meps-atm-fee-waiver-malaysia-explained/). The blog post synthesizes information from Bank Negara Malaysia's official announcements and user reports. No external studies were cited in the source. Currency amounts are in Malaysian Ringgit (RM). This article was last updated on February 20, 2025.